TaxTMI 
TaxTMI 
2020 (10) TMI 400
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....rent orders of the Ld. Commissioner of Income Tax (Appeals)-6, Mumbai [hereinafter in short "Ld.CIT(A)"] dated 23.10.2017 for the A.Ys.2013-14 and 2014-15. 2. Assessee has raised following common grounds for the A.Y.2013-14 and A.Y. 2014-15: - "1) The learned Commissioner of Income Tax (Appeals) erred in not following the decision of the Special Bench in the case of ACIT vs. Vireet Investment (P) Ltd. (165 ITD 27) while computing the addition to be made under Clause (f) of Explanation 1 to Section 115JB(2). 2) Without prejudice to Ground No.1 above, the learned Commissioner of Income Tax (Appeals) ought to have held that the addition made by the appellant in its Return of Income was the correct basis of computing the ad....
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....allowance as computed as per Rule 8D shall not be made applicable for computing the book profits u/s. 115JB of the Act. The Ld. Counsel for the assessee submitted that the Special Bench of the Delhi Tribunal in the case of ACIT v. Vireet Investments Private Limited [165 ITD 27] held that computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to provisions of Rule 8D of I.T Rules. 6. We have heard the rival submissions, perused the orders of the authorities below. We find that the issue is squarely covered by the decision of Tribunal in assessee's own case for the A.Y. 2012-13 in ITA.No.2332/Mum/2016 dated 28.06.2018 wherein it has been held as under: - "3. We have heard the parties and ....
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.... 5. It is pertinent to note that the income computed under Section 115JB of the Act was assessed as total income in the hands of the assessee for the year under consideration, since the total income computed under the normal provisions of the Act was lower than the book profit. Hence the issue that requires adjudication is whether the learned CIT(A) was justified in directing the AO to adopt the disallowance computed under Section 14A of the Act for the purpose of computing book profit under Section 115JB of the Act. 6. The learned A.R. placed reliance on the decision rendered by the Special Bench in the case of Vireet Investment P. Ltd. (2017) 165 ITD 27 (Del) wherein it was held that the addition under clause (f) of Expla....
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....e are of the view that the computation made by the assessee for determining expenses relating to exempt income for the requirement of provisions of Section 115JB of the Act does not require disturbance. Accordingly we set aside the order of the learned CIT(A) on this issue and direct the AO to accept the computation made by the assessee for the purpose of sec. 115JB of the Act. 7. Respectfully following the said decision, we direct the Assessing Officer to accept the computation of disallowance u/s. 14A of the Act as worked out by the assessee for the purpose of computing the book profits u/s. 115JB of the Act for A.Ys. 2013-14 and 2014-15. 8. Coming to the appeals filed by the Revenue we notice that revenue has challenged the order o....